Lord Whitty Portrait Lord Whitty (Lab) [V]
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My Lords, mine is a very brief point which goes in the opposite direction to the noble Viscount’s. On the previous amendment, we discussed the method of appointment of non-executive directors and the role of parliamentary committees. Surely, at least in respect of the final version, if the Secretary of State considers a non-executive director to be unfit there should at least be a consultation with the chairs of the parliamentary and Commons committees who were party to his or her original selection.

It seems lopsided that we have more or less agreed in principle for parliamentary engagement in the appointment, but that the Secretary of State could on the face of it, taking sub-paragraph (6)(c) as it stands, make a decision against a member of the OEP because they thought they were not doing the job properly. When we have parliamentary scrutiny, that judgment should at least be shared by the chair of the appropriate committee. That is my sole point on this group of amendments.

Lord Bruce of Bennachie Portrait Lord Bruce of Bennachie (LD) [V]
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My Lords, I was very happy to support and sign this amendment, which has been explained by the noble Baroness, Lady McIntosh. It is a specific proposal and has been brought to our attention by the Law Society of Scotland as something it feels is consistent with similar circumstances in other public bodies, such as those she mentioned. Trying to define what makes a person unfit gives some clarity and specificity to such a situation, in contrast to a general catch-all that is left to some extent to the discretion of the Minister.

The noble Viscount, Lord Trenchard, said that he thought a conviction was not necessarily appropriate as a disqualification. This is stretching a point, but it seems to me that the Secretary of State still has discretion and what the amendment seeks to do is to say that in normal circumstances, and probably in most circumstances, a conviction, whether it happens while the member is in office—especially if it happens in office—or prior and has not been disclosed, would be a valid reason to remove someone. Similarly, becoming insolvent while being a member of the board is another reason that is clear and understood.

The purpose of the amendment is to add some clarity, without in any way preventing the Secretary of State from arguing other reasons as to why a member has become unfit. It is not suggesting these are the only two definitions, but they are generally accepted as significant ones that have been identified in other bodies—particularly in Scotland, which is why the Law Society of Scotland has recommended it.

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Lord Bruce of Bennachie Portrait Lord Bruce of Bennachie (LD) [V]
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My Lords, I am happy to be a co-signatory of Amendment 92, and I am pleased to support the case that the noble Baroness, Lady McIntosh, has just made. However, I can certainly also support the case for a provision for budget review, as incorporated into the otherwise similar Amendment 93. But that is the specific difference that I think adds something to what is proposed.

As the debate on the independence of the OEP progresses, its resources and budgetary process will be significant to both how independent and how effective it is going to be. These amendments are trying to probe, in some detail, what the budgetary process could and should be because, to be effective, the OEP needs the necessary resources to carry out functions and to respond to the dynamics of what is an inevitably changing situation with environmental issues. Members have been talking about us legislating for 40, 50 or 60 years ahead, yet the dynamic of rapid change on the environment means that we need to be rapid in our responses, and the mechanism needs to be able to adopt that.

It is also important to reinforce the fact that the OEP’s job is to support Parliament and, though it is based in Defra, to be as independent as possible. So, again, these amendments are designed to try and ensure that it is able to do that. As the noble Lord, Lord Rooker, said, it takes over EU responsibilities in this respect but, obviously, not in a way that was possible when we were in the EU, because its impact is entirely domestic. It is clearly distinct from the Environment Agency, but there is likely to be an interaction between the two organisations. Again, it is important that both sides are aware of the resources, the budgets and the responsibilities that they have.

These amendments set out the framework, and it would be helpful if the Minister could give some indication of what the Government believe the budget is likely to be and what staffing and resources are envisaged for the OEP. The interim board is up and running so, presumably, some serious discussions and proposals are emerging at this stage. It is proposed in these amendments that there should be a five-year budget that addresses the resource requirements and the funding and also sets out a work plan for that five-year period so that both Parliament and those who will be impacted by the work will be aware of how the OEP is going about its business and how effective its reach is likely to be.

There is absolutely a sensible reason why there should be reviews as necessary, but there should be at least one review during a five-year period. Five years is a long time when we are facing the environmental changes that are bearing down on us.